Mr. Stephen Shefsky reports

JAMES BAY RESOURCES LIMITED ANNOUNCES SUCCESSFUL COURT DECISION IN CLAIMS AGAINST MAK MERA AND WALE SOLA

James Bay Resources Ltd. has received the decision of Justice Eugenia Papageorgiou of the Ontario Superior Court of Justice, in the claim made by James Bay against Mak Mera Nigeria Ltd. and Wale Sola. Under the decision, James Bay was successful in all claims, and was awarded $405,000 to be repaid by Mak Mera, plus $200,000 in damages for defamation against Mak Mera and Mr. Sola, jointly and severally.

James Bay had sued Mak Mera and Mr. Sola for a return of amounts advanced pursuant to a memorandum of understanding (MOU) entered in March, 2011, and subsequently replaced by a letter agreement made Feb. 1, 2012. Justice Papageorgiou ruled that the $300,000 payment under the MOU was never due because James Bay never acquired an interest in OML-11 (an oil and gas property in Nigeria), and that the $165,000 payment due from the letter agreement was contingent on TSX Venture Exchange approval for James Bay's change of business, which despite extensive efforts by James Bay to fulfill its obligation to obtain TSX-V approval, did not occur. Justice Papageorgiou accepted James Bay's position that Mak Mera was obligated to repay these funds in the circumstances.

In addition, the decision found that a July, 2014, letter from Mak Mera, which claimed that James Bay had made false and misleading public filings and defrauded Mak Mera, was defamatory. In the decision, Justice Papageorgiou determined that Mak Mera and Mr. Sola failed to prove the truth of these defamatory allegations, and that the July, 2014, letter was sent by them with malice. The decision concludes that letter "is extremely misleading and Mr. Sola knew many of the damaging facts set out in the July letter were not true." Justice Papageorgiou went on to find that Mak Mera and Mr. Sola were not motivated by a desire to protect the integrity of the oil and gas business in Nigeria, but rather by a desire to extract pecuniary benefits from James Bay that they were not entitled to receive.

In rendering the decision, Justice Papageorgiou found James Bay's president and chief executive officer, Stephen Shefsky, to be a credible and reliable witness with an impressive CV (curriculum vitae). By contrast, despite an impressive CV, Justice Papageorgiou found Mr. Sola was not credible and reliable as a witness, and Mak Mera's failure to call its executive Chief Michael Olorunfemi negatively reflected on the overall credibility of its case.

James Bay intends to make submissions on a costs award in relation to the decision. The defendants, Mak Mera and Mr. Sola, have until Jan. 3, 2024, to serve a notice of appeal if they intend to appeal the decision.

We seek Safe Harbor.